ECONOMICS Chapter 13 Study Set Question And
Answers Verified 100% Correct
In long-run equilibrium, monopolistic competition entails:
<an efficient allocation of resources.
<an overallocation of resources due to inadequate capacity.
<an underallocation of resources due to excess capacity.
<production at the minimum attainable average total cost. an
underallocation of resources due to excess capacity.
Refer to the data. If columns (1) and (3) of the demand data shown are this
firm's demand schedule, the profit-maximizing level of output will be:
<12 units. <8
units.
<10 units. <9
units.
8 units.
Refer to the data. If columns (1) and (3) of the demand data shown are this
firm's demand schedule, the profit-maximizing price will be:
<$9.
<$7.
<$11. <$6.
$9.
,Refer to the data. If columns (1) and (3) of the demand data shown are this
firm's demand schedule, economic profit will be:
<$10.
<$19.
<$6.
<$8.
$8.
Refer to the data. Suppose that entry into the industry changes this firm's
demand schedule from columns (1) and (3) shown to columns (2) and (3).
Economic profit will:
<fall by $10.
<fall to $6.
<increase by $10.
<decline to zero. decline
to zero.
, Refer to the data. Suppose that entry into this industry changes this firm's
demand schedule from columns (1) and (3) shown to columns (2) and (3).
We can conclude that this industry is:
<a pure monopoly.
<purely competitive.
<a constant cost industry. <monopolistically
competitive. monopolistically competitive.
Refer to the data. With the demand schedule shown by columns (2) and
(3), in long-run equilibrium:
<price will equal average total cost.
<total cost will exceed total revenue.
<marginal cost will exceed price. <price
will equal marginal revenue. price will
equal average total cost.
An important similarity between a monopolistically competitive firm and a
pure monopolist is that both:
<realize an economic profit in the long run.
<achieve allocative efficiency.
Answers Verified 100% Correct
In long-run equilibrium, monopolistic competition entails:
<an efficient allocation of resources.
<an overallocation of resources due to inadequate capacity.
<an underallocation of resources due to excess capacity.
<production at the minimum attainable average total cost. an
underallocation of resources due to excess capacity.
Refer to the data. If columns (1) and (3) of the demand data shown are this
firm's demand schedule, the profit-maximizing level of output will be:
<12 units. <8
units.
<10 units. <9
units.
8 units.
Refer to the data. If columns (1) and (3) of the demand data shown are this
firm's demand schedule, the profit-maximizing price will be:
<$9.
<$7.
<$11. <$6.
$9.
,Refer to the data. If columns (1) and (3) of the demand data shown are this
firm's demand schedule, economic profit will be:
<$10.
<$19.
<$6.
<$8.
$8.
Refer to the data. Suppose that entry into the industry changes this firm's
demand schedule from columns (1) and (3) shown to columns (2) and (3).
Economic profit will:
<fall by $10.
<fall to $6.
<increase by $10.
<decline to zero. decline
to zero.
, Refer to the data. Suppose that entry into this industry changes this firm's
demand schedule from columns (1) and (3) shown to columns (2) and (3).
We can conclude that this industry is:
<a pure monopoly.
<purely competitive.
<a constant cost industry. <monopolistically
competitive. monopolistically competitive.
Refer to the data. With the demand schedule shown by columns (2) and
(3), in long-run equilibrium:
<price will equal average total cost.
<total cost will exceed total revenue.
<marginal cost will exceed price. <price
will equal marginal revenue. price will
equal average total cost.
An important similarity between a monopolistically competitive firm and a
pure monopolist is that both:
<realize an economic profit in the long run.
<achieve allocative efficiency.
